by Davey Winder

It’s a scenario that every small online business fears: site security is compromised, hackers steal customer data including credit-card details, and your brand and your reputation are left in ruins. No wonder then, that many small online businesses are looking to insure against hackers and the resulting financial impact of a security breach. But is insurance really the answer and could it even be part of the problem?

The insurance brokers are, naturally, presenting such insurance as pure common sense. A chap who works in the insurance business used car insurance as a counter argument to my suggestion that surely the best IT security insurance policy was to remain secure in the first place.

“We all appreciate the need for car insurance” he told me. “No matter how careful a driver you may think you are. The simple fact is that you never know when a drunken idiot is going to crash into you”.

The argument being, as with all insurance policies, you are paying a premium to cover you for that worst-case scenario should it ever happen. “When it comes to online security,” Mr Insurance assured me, “the chances of the worst-case scenario becoming a reality are increasing day by day, as criminals develop ever more sophisticated methods of hacking your site. To not insure against the risk of being hacked is bad business, and that’s the bottom line”.

“Unlike driving a car, running a secure web business is pretty much about how safe you are, rather than how unsafe other people are”

To read the reamining article …..

How to manage the gaps of Cyber Insurance